Dell to Cut 10% of Its Work Force

Layoffs Are First Since '01
And Follow Cost Review;
Preliminary Net Is Flat

By

Christopher Lawton

Updated June 1, 2007 12:01 a.m. ET

Moving to turn around ailing Dell Inc., founder and Chief Executive Michael Dell announced layoffs at the company for the first time since 2001.

The Round Rock, Texas, personal-computer company yesterday said it would lay off 10% of its work force, or about 8,800 people, over the next year. The cuts came as a part of a cost review and were announced with fiscal first-quarter earnings. Under the results, which were preliminary, Dell...